Turnover and Absenteeism

Essay by jgc04bUniversity, Bachelor'sA+, September 2009

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"The days of going to work for an organization and staying till retirement are long gone. Often, employees will move from job to job because they are unhappy with some aspect of the job. Sometimes, they leave because that are in a stagnant situation and there's nowhere for them to go, and no way to advance (Providing a Career)." Employee turnover is a major problem that is plaguing American businesses. High turnover of employees lowers profits and lowers employee morale. "In an organization with 3,000 employees and an average salary of $45,000, a 1 percent reduction in turnover equals more than $1.3 million in retained profits(2)." With reduction in employee turnover proving to be so valuable, why aren't more companies attempting this? The reason is that most companies do not know how. Some ways to do this are to hire the right employees the first time, develop effective Human Resource practices, and proper training for company supervisors.

"The first and probably most important issue it to provide proper training for company supervisors. John Tschohl, founder and president of the Service Quality Institute said," I would guess that bad bosses are the major cause of employee turnover." He also said, "The number-one reason employees leave their jobs is not because of money, it's because they work for bad bosses and don't feel valued and appreciated." This is often caused because the company does not hire the right boss for the job. In many cases they were not trained properly on how to be a boss, or encourage good performance. Tschohl also adds that often people are promoted to leadership positions for the wrong reasons. They are promoted because they show great skill or expertise in the area at hand, but have no leadership qualities what so ever. This can...